Estimates by Swiss Re?s sigma study on catastrophes indicate that more than 2,38,000 people lost their lives to natural catastrophes and man-made disasters in 2008 ? the fourth largest number of deaths since 1970.
While the total cost to society was $ 225 billion, $ 50 billion was covered by property insurance, making 2008 the second costliest year ever in terms of insured losses.
In 2008, large loss events tragically claimed over 238 000 lives. In early May, tropical cyclone Nargis struck Myanmar, killing 1,38,400 people, setting off one of the largest humanitarian crises in recent memory. Later in May, a devastating earthquake measuring 7.9 shook China?s Sichuan region, killing 87,400 people and leaving over 10 million homeless. Most of the losses from these two events were not insured.
Catastrophes cost insurers more than $ 50billion in 2008, making it the second costliest year in insurance history. Of the total amount, natural catastrophes accounted for $ 43 billion, with storms costing insurers $ 39 billion.
Hurricanes in the US and the Caribbean triggered record losses, with Hurricane Ike resulting in claims of $ 20 billion, followed by hurricane Gustav at $ 4 billion (insured losses include property, motor, offshore damage and flood losses).
Man-made disasters continued to be costly for the insurance industry in 2008.
Explosions and major fires resulted in losses of $ 4.8 billion.
Damages to industry and industrial warehouses accounted for approximately $2.1 billion of this amount, while oil and gas-related incidents ? excluding offshore damage from hurricanes ? cost insurers another $ 1.5 billion.
Catastrophes in 2008 cost the society $ 225 billion. This figure includes both insured and uninsured losses to buildings, infrastructure and vehicles. The Sichuan earthquake was the costliest at $ 85 billion.